Icasa and government finally reach accord about spectrum

The government’s drive to release additional spectrum is gathering pace after the department of telecommunications and postal services and the Independent Communications Authority of SA (Icasa) — the communications regulators — reached an out of court settlement regarding  the future allocation of high-demand spectrum.

The high cost to communicate in SA has largely been blamed on a lack of competition and the "spectrum crunch". Spectrum, often referred to as the lifeblood of the wireless industry, refers to the radio signals set aside to carry data over the air, including for mobile phones, TV and global positioning systems (GPSs).

This is a limited resource largely controlled by the government. The release of additional spectrum will be key in terms of diversifying and boosting competition in telecommunications sector, and reducing the cost of data.

As part of an auction in 2016, Icasa invited applications for 700MHz, 800MHz and 2.6GHz spectrum licences to boost the roll-out of faster broadband. However, telecommunications and postal services minister Siyabonga Cwele approached the courts to challenge the auction, arguing that the government’s policy on spectrum was yet to be finalised and that such an auction would only benefit the big operators.

After years of uncertainty, the department and Icasa have reached an out of court settlement. The agreement between Icasa and the department is in line with President Cyril Ramaphosa’s call to “initiate the process for the allocation of high-demand radio spectrum to enable licensing” as part of the economic stimulus and economic recovery plan.

“In terms of the settlement agreement, Icasa will withdraw the [invitation to apply] and the minister will also withdraw the legal challenge,” the department said on Wednesday.

“The agreement is a product of consultations between the minister, the department and Icasa. As a result of the settlement, the minister commenced consultations with Icasa on a draft policy direction for the licensing of high demand spectrum and intends issuing the draft policy direction for public comment. This policy direction will be issued in terms of the provisions of the Electronic Communications Act of 2005,” the department said.

It said at the end of the public consultation process, and after considering the final policy and policy directions issued by Cwele, Icasa would commence the licensing process for the assignment of high-demand spectrum.

“We are determined to move with speed to transform the sector to enable a greater participation of black women, the youth, people with disabilities and SMMEs,” said Cwele.

“We shall continue to consult with all stakeholders to ensure that we roll out modern telecommunications infrastructure and services at affordable costs to all citizens of our country. SA is open for investment in the ICT sector. Accordingly, the settlement agreement and the subsequent policy direction will contribute to improving investor confidence,” he said.

Icasa chair Rubben Mohlaloga said: “The authority is indeed pleased that the impasse over the licensing of high-demand spectrum has finally been resolved. It is our concerted view that the settlement of the 2016 litigation and pending consultation process on the policy direction provides much needed certainty for the sector to thrive.

“The authority will ensure that it executes its mandate in a manner that promotes competition, facilitates transformation of the sector and provides a regulatory environment that encourages investment in the sector,” he said.